Download ABSTRACT Marketing Globalization in Regards to Advertising

ABSTRACT
Marketing Globalization in Regards to Advertising Techniques:
With a Focus on the United States and the United Kingdom
Nicole C. Stelter
Director: Chris Pullig, Ph.D.
Advertisements of the United Kingdom tend to be more indirect and liberal
compared to the hard sell strategies of US advertisements due to cultural differences. By
understanding the background and history of advertisement as well as the cultures of
these particular regions, their variations become clearer. However, these differences
should decrease overtime due to globalization and the increase of common world culture.
Driving factors of globalization, such as an increase in communication and transportation
between countries, are creating converging wants and needs between these countries.
Depending on the management orientation of a company, different global marketing
strategies may be used in order to keep up with the globally growing and continually
competitive market.
APPROVED BY DIRECTOR OF HONORS THESIS:
_______________________________________________
Dr. Chris Pullig, Department of Marketing
APPROVED BY THE HONORS PROGRAM:
______________________________________________
Dr. Andrew Wisely, Director
DATE: __________________________
MARKETING GLOBALIZATION IN REGARDS TO ADVERTISING TECHNIQUES
WITH A FOCUS ON THE UNITED STATES AND THE UNITED KINGDOM
A Thesis Submitted to the Faculty of
Baylor University
In Partial Fulfillment of the Requirements for the
Honors Program
By
Nicole Stelter
Waco, Texas
May 2015
TABLE OF CONTENTS
Contents
CHAPTER ONE ................................................................................................................. 1
Background and History of Marketing and Advertisements ........................................... 1
From the Beginning ..................................................................................................... 1
Print Journalism ........................................................................................................... 3
The Industrial Revolution ............................................................................................ 3
Advertising as an Industry ........................................................................................... 4
The Creative Side of Advertising ................................................................................ 6
The Reason-Why Strategy ........................................................................................... 7
The Importance of a Powerful Brand .......................................................................... 8
Packaged Goods .......................................................................................................... 9
Painting to Photography ............................................................................................ 10
The Hard Sell ............................................................................................................. 11
Radio .......................................................................................................................... 11
Television .................................................................................................................. 12
Internet ....................................................................................................................... 13
Advertising Today ..................................................................................................... 14
Summary of History of Advertising .......................................................................... 14
CHAPTER TWO .............................................................................................................. 15
Differences of Marketing Strategies in the United States and the United Kingdom .... 15
Culture and Advertising............................................................................................. 15
Development of the Industry ..................................................................................... 16
Soft Sell and Hard Sell .............................................................................................. 18
Direct and Indirect ..................................................................................................... 20
Humor ........................................................................................................................ 21
Comparative Ads ....................................................................................................... 22
Product Description ................................................................................................... 23
Metaphorical and Symbolic Ads ............................................................................... 23
Photographs ............................................................................................................... 24
Minorities and Children ............................................................................................. 24
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The Intermediate UK ................................................................................................. 25
CHAPTER THREE .......................................................................................................... 27
Globalization: Driving and Restraining Factors............................................................ 27
Culture and Globalization.......................................................................................... 27
Driving Factors .......................................................................................................... 27
Communication Technology.................................................................................. 28
Travel and Transportation ...................................................................................... 30
Converging Needs and Wants of Markets ............................................................. 32
Product Costs and Quality ..................................................................................... 32
Trade Agreements and World Economics ............................................................. 33
Restraining Factors .................................................................................................... 34
Language ................................................................................................................ 35
Globaphobia ........................................................................................................... 36
National Controls ................................................................................................... 37
Organizational Culture ........................................................................................... 38
CHAPTER 4 ..................................................................................................................... 39
Global Marketing....................................................................................................... 39
Ethnocentric Orientation............................................................................................ 39
Polycentric Orientation .............................................................................................. 40
Regiocentric Orientation............................................................................................ 41
Geocentric Orientation .............................................................................................. 42
Standardization .......................................................................................................... 43
Adaptation ................................................................................................................. 43
The Future of Global Marketing ................................................................................ 44
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ACKNOWLEDGMENTS
As philosopher Ludwig Wittgenstein once said, “Knowledge is in the end based
on acknowledgment”. How true this is. I have learned so much from my brilliant director,
Dr. Chris Pullig. His experience, research and vast knowledge in the field of marketing
and advertisement pushed me to want to achieve more with my own work and guided me
along the way of reaching the goals he helped form.
My appreciation also extends to the members of my defense panel, Dr. Leslie
Palich and Mr. Jim Anderson. From having the patience to read essentially a 53 page
research paper to sitting through my hour-long oral defense, I am truly grateful for their
time, questions and suggestions.
I would also like to recognize my good friend and all-nighter companion, Sasha
Shylo, for keeping me going, encouraging me through stressful breakdowns and (perhaps
most importantly) bringing me food. You know the way to my heart. Lastly, I cannot say
thanks enough to my friends who supported me through this process, particularly Chuck
Voss for granting me permission to call at any hour, a privilege that I took advantage of
much too often.
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DEDICATIONS
I would like to dedicate this thesis to the too many nights of sleep who made the
final sacrifice for the benefit of these next 50 pages. Your absence caused me much grief
and temporary sorrow, but I have come to learn your martyrdom was not only valuably
constructive, but necessary. You will forever be remembered, although I never knew you.
Farewell.
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CHAPTER ONE
Background and History of Marketing and Advertisements
From the Beginning
The art of advertising has essentially existed for as long as humans have been
doing business. It uses different methods to catch the viewers’ attention and persuade
them to act. According to its definition, advertising consists of “techniques and practices
used to bring products, services, opinions, or causes to public notice for the purpose of
persuading the public to respond in a certain way” (Merriam-Webster). While this can
include anything from political propaganda to religious indoctrination, we generally
associate advertising with a form of marketing communication to promote brands and
increase sales.
Advertising has grown and shaped culture as much as culture itself affects
advertisements. It has been a fundamental part of society and communication, even in
early civilizations (Evans). Throughout this chapter, we will follow the timeline of the
evolution of advertising and marketing to understand how it has developed and changed
overtime, as it continues to do today.
Much before the visual print ads and television commercials that have more
currently been popularized, verbal advertising dominated the marketplace. Due to the
general public’s lack of ability to read in combination with limited supply of physical
advertising materials, ancient societies were largely dependent on oral communication.
From the Israelites to ancient Greek and Roman societies, town criers would broadcast
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utterances of prophets and kings, and merchants would vocally announce what they were
trading and where (Farmer 2). Chinese peddling, chiming and noise making to attract the
attention of customers, dates back thousands of years in the forms of poems and folk raps
(Feng 117).
Physical advertisement, now more common due to the broader audiences being
reached, developed from these origins of verbal advertising. However, it is debatable
what may be considered the very first visual advertisement. Some consider a copper plate
from the Song dynasty with “we buy high quality steel rods and make fine quality
needles, to be ready for use at home in no time” written below a logo to be the world’s
earliest physical advertisement, while others argue, maybe too optimistically, that animal
wall paintings in caves dating to 4000 BC signify the beginning of visual advertising
(Hong Liu).
While we may not know the exact first visual advertisement, we do know that
they affected the cultures of essentially all civilizations. Though they may have originally
been mere announcements, advertisements quickly grew into much more (Columbia
Encyclopedia). Egyptians made sales messages using papyrus, which helped to stimulate
their economy, and the Romans used professionally painted signs to advertise gladiator
fights, significantly affecting Roman culture by hyping the society for the events (BBC
and History Today). Throughout the centuries, advertising has continued to have a mutual
relationship with culture, both affecting the other dramatically.
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Print Journalism
The world of advertising was considerably altered in 1447 with the introduction
of one of the most influential pieces of technology in human history; the printing press.
While introduced to Europe by the German, Johannes Gutenberg, the technology of
movable type printing technology actually existed in Asia centuries beforehand
(Marantz). Nevertheless, the printing press drastically increased literacy in Europe and
led to the mass production of books. One of the most famous early uses was by Martin
Luther, starting the reformation.
Advertising and mass printed journalism come together in 1631 through the one
of the earliest modern ‘advertisers’, Theophraste Renaudot. This French doctor, focused
on the poor of Paris, created a recruitment office for those without jobs. In order to more
broadly distribute information on available work and general public announcements,
Renaudot created La Gazette, the first French newspaper, making him “the first French
journalist- and the inventor of the personal ad” (Tungate).
Another influential journalist and pioneer of advertisement is the much more
famous Benjamin Franklin. In a 1729 issue of the Gazette, Franklin printed 9 ads with the
word ‘Advertisements’ written in bold at the top (Applegate). By advertising with
Franklin, retailers’ sales increased. During the 1700s, “ads were for real estate, slaves,
runaway apprentices, books, wines, medicines, and lotteries” (Applegate).
The Industrial Revolution
Early advertising agencies came into existence because of the industrial
revolutions and its effects on the economy and business environment. Britain saw a
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growth in population in the 1700s due to an increase in agricultural technology and
knowledge, therefore producing an equal growth in demand as well as innovation. From
the turn of the century to the mid-1800s, Britain experienced an industrial revolution with
a rapid spread of new innovations and movement of work from a “cottage” industry to
large-scale factories with machines, which led to immeasurable advancements in
standards of living (Bythell 17-23). Due to the increase of production and more widely
available consumer goods being produced at such high quantities, companies needed a
way to sell more of their products to an increasingly larger potential market base. Pincas
and Loiseau sum it up well when they stated that the “first advertising people were
primarily people who pioneered the idea that the industrial revolution could bring about
mass consumption through mass communication” (Pincas and Loiseau 25).
Advertising as an Industry
While Renaudot, the French doctor and first French journalist, may be credited
with connecting advertising and mass media, it remains disputed which company was the
first advertising agency. This is due to the muddled path of advertising as a profession
and the definition or interpretation of ‘advertising agency’. One argument is for London’s
William Tayler, who was essentially a sold advertising spots in newspapers. However,
Tayler was not part of the creative side of things that advertising is today. Rather, he
focused on the actual selling of space in the newspapers and took a commission out of the
fee (History of Advertising).
Across the Atlantic, Volney B. Palmer’s company based in Philadelphia was the
beginning of advertising agencies in the United States. However, like Tayler, Palmer was
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more of a sales agent between companies and newspapers and did not design the
advertisements themselves like current advertising agencies would do. It is commonly
agreed that here, in 1842 with Palmer, advertising becomes its own industry (Pincas and
Loiseau 17). Palmer was in fact the first to use the phrase ‘advertising agency’. Still,
these early agencies “had nothing to do with creating ads” and the manner of this practice
brought chances for corruption (Tungate 14). In fact, advertisers had a bad reputation due
to their ties with medicine cleverly sold by quack doctors, to the detriment of both
industries (Tungate 13).
Following the timeline of marketing history, we begin to see mass media
advertisings in the 1800s. Expanding from the newspapers and brochures earlier in the
century, companies began to focus on spreading news of their business more broadly.
The first posters appear on public transportation in London in 1847 and the French
introduce catalogues later in the 19th century (Pincas and Loiseau 25). The advertising
industry evolved beyond the early strategies of Tayler and Palmer and began to do more
than simply sell spots in newspapers. The two most notable players in laying the
foundation for what the profession is today are Americans George P. Rowell and Francis
W. Ayer (Pincas and Loiseau 25).
While advertising may have originated in Europe, the United States grew it into
an industry and made it what it is today (Pincas and Loiseau 32). Rowell was the first to
publish a media directory in 1869, making the trade more respectable (Applegate). He
was also one of the first to use the wholesale method of buying in bulk and selling
individually for newspaper space (Tungate 14). Ayer, placing a high importance on
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integrity and honesty, also heightened the reputation of the industry by charging a fixed
commission, bringing transparency to the previously hazy business of advertising
(Applegate). In 1880, Ayer began to actually write advertisements in addition to simply
selling and printing them (Applegate). His company, N.W. Ayer & Son, subsequently
becomes one of the most influential advertising agencies the world has ever seen, but we
will get back to that later.
The Creative Side of Advertising
We now enter the creative realm of marketing with a surprisingly important
consumer good in the history of advertising: soap. Soap was most likely such an
influential product, at least in the advertising world, because most products were sold
individually, not requiring a package and making it difficult to advertise distinct brands.
Pear’s Soap Company hired Thomas J. Barratt in 1862, one of the earliest and most
significant creative directors, so to speak (Tungate 12). Barratt was one of the first to use
testimonials to qualify the value of the product being sold. He hired doctors and chemists
to speak on behalf of the soap, focusing on the hygienic qualities. Even more renowned
was Barratt’s use of actress Lillie Langtry as a celebrity endorser for the soap, quoting
her use of only Pears soap exclusively (Evans). The creative leader of advertising also
used a written testimonial by spiritual leader and writer Henry Ward Beecher, which he
published on the front page of the New York Herald, also unprecedented at the time
(Evans).
However, Barratt is arguably most famous for tying promotion of products and art
together. He purchased an illustrious painting of bubbles by a painter named Sir John
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Everett Millais (Tungate 12). While this created somewhat of a controversy at the time,
bubbles soon became an icon for the soap company.
The Reason-Why Strategy
There seems to be a common theme throughout all of the notable pioneers of
advertising listed thus far; that theme is that they all put importance on honesty and
integrity. Following this trend, the “father of modern creative advertising”, John Powers,
focused on plain speak, simple, and persuasive reason-why ads that were bluntly honest
(John E. Powers). An extreme example of a frank ad is seen quoted in Mark Tungates’
book, Adland, simply stating, “We are bankrupt. This announcement will bring our
creditors down on our necks. But if you come and buy tomorrow we shall have the
money to meet them. If not we will go to the wall” (Tungate 15). While this strategy may
not work today, consumers appreciated the direct honesty and saved the bankrupt store.
John E. Kennedy, another forerunner of the industry, shared more with Powers than his
first name and middle initial. Kennedy expanded on Powers’ cogent style. He realized
that there needed to be a reason for the customers to buy the product (Applegate).
Focused on the logical rationalization as to why the customer should buy this particular
product, Kennedy defined advertisement as “salesmanship in print” (John. E. Kennedy).
When Kennedy left the advertising agency of Lord & Thomas in 1906, he was replaced
by Claude Hopkins, the last of the reason-why advertisers we will look at (Tungate 18).
Hopkins continued Kennedy’s approach, but enjoyed applying more research into the
manufacturing of the products as well as testing which ad was more effective. Through
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these experiments and studies, he was a key player in ‘scientific’ advertising (Applegate).
Hopkins used coupons and samples as form of testing his ads. Additionally, he
emphasized the importance of brand image, as seen in his adverts (Applegate).
As advertising progressed into the 1920s, the trend turned away from this strong, rational
approach and headed toward a more poetic, atmospheric style, wooing the customer to
buy into the luxury, clearly following the culture of the roaring 20s. Advertising has since
fluctuated back and forth between the reason-why hard sell and the soft sell seen more in
the 20s.
The Importance of a Powerful Brand
In 1885, a wounded colonel from the Civil War who was addicted to morphine
crafted a less dangerous alternative medicine (Gardiner 21-24). This tonic combined with
carbonated water was first sold at soda fountains for 5 cents a glass and thus one of the
most famous products ever sold was born (Candler 81). Coca-Cola was not only a leader
in carbonated drinks, but also in the marketing field. In 1906, Coca-Cola hired an up and
coming advertising agency, D’Arcy (Pincas and Loiseau 32). D’Arcy had many
successful ads with Coca-Cola, including a front and back cover of a magazine, getting
the brand into the public view (Pincas and Loiseau 35). The iconic packaging of classic
Coca-Cola glass bottles came about in 1915 had has hardly changed since (Pincase and
Loiseau 35). Continuing on with the branding of Coca-Cola, Hadden Sundblom created
the jolly old man in a red suit named Santa in 1930, although it is debated whether or not
this Santa existed previously (Pincas and Loiseau 58). Either way, the fact that Coca-Cola
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and Santa are still connected in many consumers’ minds today is a great example of
advertising strongly influencing culture.
What set Coca-Cola apart from its competitors was its focus on the brand. By
connecting the product and Coca-Cola’s values with the brand, it created a relationship
with consumers. Customers would appreciate what it stood for and buy into the brand. By
having such a widely recognizable logo, Coca-Cola made itself a familiar brand worldwide. Now, we can find anything with a Coca-Cola logo on it from tee-shirts to
Christmas ornaments.
Packaged Goods
While advertising in publications and getting the brand recognized are extremely
important, it won’t do much if customers don't recognize the product in stores. Consumer
goods, and particularly food items, used to be sold individually. Companies started
packaging their products, “not simply to protect them and preserve their quality, but also
to establish their quality by the use of the company’s own name” (Douglas). By
advertising to the customers, the manufacturers could dramatically boost their sales,
financially benefiting the retailers as well and giving an unofficial quality guarantee to
the customers (Tungate 12).
With food now being sold in packs, companies began to use the packaging to
express their identity and catch the attention of the customer. In 1898, three bakery
companies came together to form National Biscuit Company, or Nabisco for short.
Working with N.W. Ayer & Son (revisited from page 8), Nabisco chose a brand name of
‘Uneeda Biscuit’ and began to sell the world’s first packaged cookies and soda crackers
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(Pincas and Loiseau 36). Focusing on the benefits of containing the little cookies in
sealed packages, N.W. Ayer & Son promoted Uneeda Bisuit’s freshness while creating a
memorable brand (Applegate). Ayer & Son went all out, creating the largest campaign up
to that time and advertising the packaged biscuits in magazines, newspapers, and even
outdoor ads (Applegate). With the overwhelming success of this campaign, N.W. Ayer &
Son continued to grow as an advertising agency, creating notorious brands and
campaigns for companies such as Cracker Jacks, Morton’s Salt, Camel Cigarettes, and
Cadillac (Pincas and Loiseau 37-42).
Painting to Photography
From the beginning of visual advertising until the early 1900s, advertisers used
paintings and illustrations to show off their product. A famous artist in particular,
Leyendecker, created a “timeless picture of elegance” in his painted ads for Arrow
Collars and Shirts (Pincas and Loiseau 46). However, growing from the first photograph
in 1877, the artistic world as it was known changed drastically. Due to the realism of the
photographs, advertising agencies began to switch to the true-to-life and descriptive
photos that showed off the product itself (Pincas and Loiseau 47). With the rational
‘reason-why’ strategy of the time, “photography replaced drawing and paintings in most
of the advertising of the 1930s” (Pincas and Loiseau 46) While there were some who
stuck to the aesthetic and artistic side of marketing, these objective pictures combined
with the cogent advertising methods of the time lead us to hard sell, which is so famous
in American advertising.
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The Hard Sell
Hard sell advertising is direct, insistent, and persuasive. America is known for its
convincing, hard selling strategies, especially compared to the more relaxed and less
pushy approaches of other countries (Cutler 9). The progression of this strategy starts
with Powers, Kennedy, and Hopkins and their focus on reason-why advertising and
continues on to the infomercials of today. With the factual reasoning and the dominance
of true-to-life photography, advertising persuaded customers with logic and reason.
In a span of 30 years, the western world went through two World Wars with a
Great Depression in between them. With the economy and morale down, “advertising
turned increasingly towards the hard-sell and away from emotion” (Pincas and Loiseau
51). The paintings and appealing visual superiority died out after the Roaring 20s along
with the extravagant spending and popularly excessive lifestyle of the time (Pincas and
Loiseau 51). Advertisers commonly included the price and compared their products with
others, showing the realistic benefits and value of their merchandise. Competition itself
increased, due to this qualified advertising and an increase of merchandizers. Companies
would advertise promotions and try to get customers to buy despite the economic
hardships and lack of interest. “The aim was to combat consumer apathy” (Pincas and
Loiseau 51).
Radio
Despite all of the difficulties brought by the social, political and economic
troubles of the early 1900s, “this period was marked by the appearance of a major
innovation in North America and across Europe- radio” (Pincas and Loiseau 51).
11
From its beginning, radio was essentially a commercial broadcasting business, at least in
the United States. In 1922, one of the first American radio stations offered advertising
slots priced by 10-minute increments (Tungate 34). This station developed into NBC,
while CBS was created the year after. These radio stations lived off of shows produced
by advertising agencies, promoting a specific brand. In the United Kingdom, however,
radio somehow was free of advertising (Tungate 34).
A main concern of the public in the early life of radio was the invasion of privacy.
Families felt that broadcasting advertisements should not be allowed to intrude into their
quiet and intimate homes. Luckily, radio advertising of this time was much more discrete
than the blunt ads of today and found “forms of expression that would make it very
popular” (Pincas and Loiseau 80).
Radio advertisements started off as “a selection of chatty household hits”,
especially if the ad was intended to target women (Tungate 34). Frank Hummert
transformed this into a much more entertaining form when he created the soap operas
(Tungate 34). Drawing from the cliffhangers of serial stories in newspapers, Hummert
caught the attention of listeners and kept them coming back for more.
The name ‘soap opera’ itself comes from the most common sponsor of the shows.
Once again, soap led the way in advertising.
Television
The next groundbreaking technology that changed the world of advertising (and
the world as a whole) was the television. Combining visual and oral advertising for the
first time, it was a step up from radio, yet still served the same general purpose.
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Therefore, it is safe to assume that television came with the same fears of intrusion. But
as we always do, people adapted to the new broadcasting devise. In 1941, WNBT, an
affiliate of NBC, began commercial TV broadcasts (Tungate 36). By the 1950s,
television advertisement had begun to grow exponentially. With these new moving
pictures, viewers could see the actual products, practically like experiencing it in person.
As advertisements began taking up more of TV time, consumers began to not pay
as much attention and became apathetic. This caused the advertisers to respond by
increasing the hard-sell strategies as well as the creativity of the ads to catch the viewer’s
attention. More recently, people started to watch commercials for the entertainment
value, particularly during big events like the Super Bowl. However, as technology
progressed, so did the effectiveness of advertising on TV. Advances such as DVR
brought new challenges, allowing viewers to skip commercials altogether (Tungate 259).
Internet
While advertising on the radio and television reached millions of consumers and
did so in a much more interactive way that print advertisements of the times before, the
Internet dramatically changed the ways of advertising. Nowadays, websites personalize
the posted ads according to your individual searches and interests, as tracked by the
Internet. Once again, the invasion of privacy issue comes into play. Additionally, the
Internet brought an extreme amount of competition to companies worldwide, as
consumers now had access to virtually any company.
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Advertising Today
Due to an increase of communication through the Internet and other forms of
world-reaching communication as well as an increase of travel, the world is becoming a
more connected place. The growth in IT and transportation technology is causing a
globalization effect of the world getting ‘smaller’. The purpose of advertising has
changed a lot from the beginnings. Kevin Roberts, the worldwide CEO of a leading
advertising agency stated “consumers know exactly what they want” (Tungate 259).
Today, companies cannot afford to simply thrust their brand upon adverse consumers,
and with all of the competition, it is difficult to have a strong market base. Advertising’s
role today is to creatively construct an emotional connection with people in order to give
them a reason to buy their particular product. Advertisements are broadcasted on a wide
variety of mass media mediums including posters, billboards, radio and television
commercials, personalized Internet ads, and the list continues to grow.
Summary of History of Advertising
From the ancient societies’ oral announcements and paintings on the walls to the
customized pop up ads on millions of websites, advertising has surely progressed, yet it
has constantly reflected and affected the culture of societies. Over the years, advertisers
have learned the importance of communication, packaging, and building a brand that
customers can relate to. While the technology and strategies continue to change,
advertising will remain an essential player in the game of business.
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CHAPTER TWO
Differences of Marketing Strategies in the United States and the United Kingdom
Culture and Advertising
As stated in the first chapter, culture and advertising are closely related.
Advertising gladiator fights in ancient Rome built hype for the entertainment that came to
symbolize the era. Coca-Cola’s widespread use of Santa Claus in its advertisements of
the early thirty’s helped to lift spirits in a time of depression and created the appearance
of a character synonymous with Christmas. Advertisements and pop culture have worked
together for over one hundred years by example of celebrity endorsers and famous
advertisement art. The mediums of mass media used to advertise products such as radio,
television and the Internet are some of the most powerful influencers of culture today.
We also know that cultures vary across the world. While the interconnectedness
of virtual communication has brought awareness and created similarities between diverse
cultures, the history behind each remains the same. Like a brand, culture takes a long
time to develop and is thus ingrained in the people it represents. Due to the differences in
backgrounds and cultures of individual countries, advertising strategies vary across the
world. While each nations’ culture is important, this chapter focuses on the similarities
and differences of the United States and the United Kingdom marketplaces, two of the
most important influencers of advertising.
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Development of the Industry
The United Kingdom and the United States have played off of each other
throughout the development of advertising. The very origins of print advertising occurred
in Europe with the printing press and growing use of it. Posters were first seen in the tube
of London, England and the debatably first advertiser, William Tayler, practiced in
London as well. The industrial revolution, starting in England due partially to the laissezfaire government, transformed business and the selling of consumer goods. It is here
where the United Kingdom falls into the background and the United States takes center
stage.
With influencing initiators such as Volney Palmer and Benjamin Franklin,
America became a main player in the arena of advertising, even before the industrial
revolution. However, once the production of merchandise increased exponentially due to
technology and changes of the industrial revolution, the United States really started the
industry and developed it into what it is today. Rowell and Ayer brought respect to the
trade and created an industry. Powers, Kennedy, Hopkins and countless other creative
frontrunners of advertising agencies generated new strategies discussed more in depth
throughout this chapter.
Advertising did not hold such a high level of importance in the United Kingdom
as it did in America during this time. While radio and television in the United States
incorporated advertising nearly from the start, these two forms of commercial
communication and mass media were ad-free for quite a while. Commercials were
16
banned from television until 1956, about 20 years after they came into the houses of the
public (Nevett).
The development of advertising in these two countries is summed up well through
this quote: “We cannot deny the truth: ever since its inception, advertising has been an
overwhelmingly western phenomenon which started in North America and spread to
Europe” (Pincas and Loiseau 22). When the prominence of advertising expanded back
over to Europe, it brought some of its American ideas as well. However, not all of these
American practices were accepted and appreciated by the public due to traditional and
cultural differences.
From my research, I have found three main problems that the United Kingdom
has with advertising. The first difficulty that advertising faces in the UK is the historical
background of business. The aristocracy and gentlemen of the past earned their income
from renting the land they owned. They would never “engage in anything so vulgar as the
making and selling of goods” (Fox 190). Therefore, trade was historically viewed as lowclass and assumed many negative connotations that went along with that. Some
adjectives that may have reflected advertising and business in general might be
undignified, untrustworthy, pushy, and money-focused.
Secondly, the culture of the United Kingdom highly values humility and
modesty. This strongly clashes with the hard sell strategy of American advertising. The
English see US advertising as much too boastful. Whether through comparative
advertising or proud descriptions of their product, Americans use reason in their ads,
17
trying to convince the viewer that their product is in fact the best for them, which can
easily make the advert seem haughty and vain.
Connected to this is the third complication and difference between UK and US
culture. The United Kingdom is generally much more indirect than America. Reflected in
their communication with one another, it is easy to see the subtleness. A social issues
researcher explains by showing that when the English say, “Well, I expect we’ll manage
somehow”, they really mean “Yes, certainly, no trouble” (Fox 181). The elusiveness in
understatements like this that are so common in UK culture represents the indirectness of
the culture. In addition to understatements, the indirectness can also be seen through their
ironic and subtle humor.
Because of these three main differences, American style advertising did not
translate well over to the United Kingdom. In 1960, a man explained, “All
advertisements-particularly television advertisements- are utterly and hopelessly unEnglish. They are too outspoken, too definite, too boastful. He suggested that instead of
‘slavishly imitating the American style of breathless superlatives,’ the English should
evolve their own style of advertising” (Fox 184). And this is exactly what happened.
Soft Sell and Hard Sell
“US advertising has been noted as 'hard-sell' and direct, in relation to a more softsell and indirect approach used by some other countries” (Cutler et al 9).
America has a stereotype of pushy, hard-selling advertisements. This stereotype goes
back to the beginnings of American advertisement and has only been increased along the
way from the rise of supply due to the industrial revolution, the consumer apathy due to
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the economic hardships of the great depression, and the continual escalation of
competition. When this hard-sell approach was brought over the Atlantic, it was not
received well. An English native explains, “Advertising, and by extension all forms of
marketing and selling, is almost by definition boastful- and therefore fundamentally at
odds with one of the guiding principles of English culture” (Fox 184). While at first
advertisers tried to adapt the American methods for their adverts, they quickly realized
the public was not having it. “There is nothing the English detest more than an overzealous salesman” (Fox 181).
Advertisers in the UK “twisted and changed the rule of advertising”, developing a
more modest form of advertising (Fox 185). Hard-sell’s new counterpart, the soft-sell,
was thus created.
American advertising, on the other hand, has continued to amp up the hard sell
strategies of advertising. This in part is due to the competition and overexposure of
advertisements in America. For example, the United Kingdom has regulations and laws
limiting television advertisements to 6 minutes for every hour of programming. However,
in the United States, television viewers could be exposed to over 27% of commercial
time (Nevett 64).
Per capital annual advertising expenditures in the US are nearly 3.5 times higher
than in the UK (Cutler et al 8). Therefore, there is less advertising clutter in the UK,
giving individual advertisements greater impact on its viewers. In the same vein, the high
levels of American advertising cause viewers to tune it out. In order to capture the
potential viewers’ attention, advertisements have become more in-your-face, more
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boastful, and pushier. “Advertising in general also appears to be a more competitive
environment in the US than in many other countries” (Cutler et al 8).
Direct and Indirect
Similar to the hard and soft sell strategies of advertising, direct and indirect
approaches differ due to the cultures. While US ads are much more direct, English ads
seem much more oblique. One reason for this is to go against the hard-sell pushiness.
However, another reason has to do with the way they communicate. Using irony and
understatements, they seem “rather underwhelmed by the whole thing, including
themselves and the product they were supposed to be trying to sell” (Fox 181).
The English are often seen as selling themselves short and, at times, being antiintellectual. This is not because English people, or products for that matter, are lesser
compared to American or any other countries’ people and products. Instead, this
stereotype comes from a combination of the UK’s distaste for earnestness and
boastfulness (Fox 180). By being subtle and down-playing benefits, the English show the
importance they place on modesty and humility.
Another taboo is money. “The British don’t even want to mention money”
(Reinhard and Phillips 46). They find discussing money to be distasteful and old
traditions of prejudice against business make business awkward and uncomfortable (Fox
178). “The English rules forbidding boastfulness and prescribing a modest, unassuming
manner can often be at odds with modern business practices” (Fox 183). This view of
business is reflected in the advertising. They tend to be indirect whenever possible.
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Some English companies have possibly taken indirectness a bit far. A company
that sells a food product named Martime shows a great example of anti-advertising.
Apparently, this product is something that people either hate or love. While most
advertisements would focus on those that love the product, Martime chose to place
attention strictly on those that dislike it. The commercial showed people responding with
absolute disgust as they smelled and tasted the product. ‘You couldn't get away with that
anywhere else,’ says an American. But ‘as you’re never going to convert the ones who
find it disgusting, you might as well make a joke out of it.’ (Fox 184). This totally
English advertisement shows their indirectness and ability to laugh at themselves.
Humor
“Advertising agencies in the UK are especially noted for using humor”
(Helming).
As a form of indirectness, humor is common to English advertisements and is
central to the culture. With a society where very little is clear-cut, irony and humor are
obviously quite popular. While humor seen in American commercials is much more
crude and direct, humor found in English advertisements takes more focus and thought to
decipher. The irony, understatements, and banter are more subtle and entertaining (Fox
179). However, some feel “the English can be a bit too bloody subtle for their own good
sometimes” (Fox 182).
Humor is not only seen more in their adverts, but throughout their culture and
general society as well. They are proud of their sense of humor. The importance of
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humor is even seen in the business environment. Business professionals in the United
Kingdom tend to be more light-hearted and witty than most any other country (Fox 182).
Comparative Ads
We now move on to specific advertising strategies used by both the United States
and United Kingdom advertising agencies. Comparative advertising is essentially
contrasting your product to a competitor’s version and pointing out the benefits your
product has over the competition. This method, while highly used in the United States, is
very seldom used in the United Kingdom. In a study comparing five countries including
both the United States and the United Kingdom, the “US was the greatest user of this
technique” while the UK used it less than half as often (Moriarty 551).
Comparative advertising is the most direct approach and has been common in the
US since the mid-1970s when various legal cases established its legitimacy. Historically
and culturally, this does, in fact, makes a lot of sense. Comparing products is a very
logical way to show the benefits of your product. While consumers in the United
Kingdom are more focused on the entertainment value of the advertisement, commercials
and other forms of ads in the United States pay more attention to the reason as to why the
consumer should choose their product over the competition. Additionally, there is more
competition of both actual product choices as well as advertisements in the United States
that consumers are comparing the products to.
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Product Description
Following this logic, it would make sense that the United States describes
products in their advertisements more often than adverts in the United Kingdom.
In fact, 21% of US print ads use product description in their ads (Moriarty 551).
Additionally, the size of the image of the product in advertisements takes up 19% of the
ad in the United States as compared to 17% in the United Kingdom (Nevett).
Advertisements in the United Kingdom focus on the actual product less than American
advertisements simply because that is not what the viewer wants. The English culture
finds this method pushy and too forward. They would rather be entertained by the
commercial than informed about it.
Metaphorical and Symbolic Ads
On the other side of advertisement strategies, we have the creative approach. UK
advertisements can use metaphoric and symbolic advertisements because there is less
competition and a smaller amount of ads flooding the media. Therefore, viewers will pay
more attention when viewing advertisements and will be able to pick up on things that
American viewers might not due to their lack of attention. Additionally, these ambiguous
strategies match closer with their culture and its importance of understatements and
elusiveness.
In the same test of comparing advertising strategies of five countries, the United
Kingdom was the highest user of this strategy with the United States consistently being
the lowest (Nevett). Symbolism was prevalent in 32.2% of UK advertisements compared
to only 9.5% of American ads. According to Moriarty’s study of advertising approaches
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in print ads in different countries, less than 10% of US ads use a metaphorical approach.
This is reflected in Cutler’s test, suggesting results that metaphors were used in 9.2% of
English ads compared with only 2.1% of advertisements in the United States.
Photographs
In contrast with the symbolic and metaphorical ads of the UK, photographs focus
on the realistic qualities of the product and emphasize the features that set it apart. As you
may have guessed, photography is therefore more prominent in American advertisements.
97% of US print ads used photographs rather than illustrations (Moriarty). High
photograph count in US advertisements is due to the realistic impressions it leaves on the
viewer.
The size percentage of the visuals of the product was found to be 76% in United
States advertisements as compared to 69% in United Kingdom ads. Additionally, in
another testing, photographs were in 84% of US ads compared with 69.6% in English
advertisements (Moriarty).
Minorities and Children
Lastly, it is important to compare the two cultures reactions to minorities and
other subgroups seen in their advertisements. Given America’s “commitment to
universalism, rule and procedures are necessary to assure that all people are treated
equally” (Schneider &Barsoux 102). With laws regulating diversity and racial issues
being such a prevalent matter, ads in the United States are more aware of these, and thus
include a wider variety of people, reflecting its melting pot society.
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Additionally, more children appear in US ads. This is partially due to the
importance placed on independence. Children are given more personal and financial
freedom in America, making their own decisions on purchases. There is a high degree of
individualism “in countries, such as the United States, where you are supposed to be selfsufficient and take care of yourself” (Schneider & Barsoux 109).
In Hofstede’s famous model comparing cultures of over 20 countries, the United
States was ranked number one for individualism (Hofstede). Children were present in
15.5% of US ads but only 3.6% of English ads, making it the lowest of all countries
tested in the experiment.
The only country with a higher percentage of children shown in advertisements,
as far as this testing is concerned, was India. However, this is due to the importance of
family in the highly family-oriented society rather than independence and consumerism.
The Intermediate UK
“In reviewing for unique country practices, it is interesting to note that ads
originating in the UK routinely fell into the intermediate area" (Cutler et al 18).
The English have historically been known for their conservative and traditional way of
doing things, not wanting to offend anyone or be too passionate and extreme (Schneider
& Barsoux 109). Even politically, England is known for its moderation and compromise.
With their slow-to-change mentality and non-radical temperance, the United Kingdom
stands on the middle ground, including in the world of advertisement (Fox 205). This
could easily become a huge advantage for them as the world becomes smaller and more
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closely knit. With its moderate statistics in most categories, England is in the perfect
position to be the leader of globalized advertising.
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CHAPTER THREE
Globalization: Driving and Restraining Factors
Culture and Globalization
Each country has its own individual culture, separating it from the rest. Language,
history, tradition, food, religions, art and beliefs shape distinct societies of people.
Because of this, different countries have varied advertisement strategies and approaches
catered to their specific culture. However, these differences seem to be decreasing
overtime due to globalization and the increase of world culture. While each country has
its own uniqueness, the world is becoming more closely knit. This has created an
international strategy known as global marketing. As the world becomes more connected,
cultures are having more ties to one another and adapting certain aspects from each other.
The driving factors for globalization such as an increase in communication, travel and
transportation are more thoroughly explained in this chapter. However, there are also
restraining factors such as language and organizational cultures that hold back the ideas
of globalization. Because of the combination of these positive and negative factors of
global marketing, there are four main strategies of implementing global marketing which
wrap up the chapter.
Driving Factors
Countries are individualized in part by their cultures. However, we are seeing an
increasing trend of these cultures growing closer together. But why? The answer is not a
simple one. There are many factors that affect individual cultures and their changes.
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While cultures have shifted over time throughout history, we are seeing an increase in the
speed of this change as well as a change in the direction. Varying cultures are much more
exposed to other cultures today than ever before. Due to the increase in communication
and travel between countries, citizens are seeing and experiencing things and
implementing them into their own nation. This causes the wants and needs of the
marketplace to converge with the wants and needs in markets of different countries.
Businesses are also a driving force of global marketing. Most businesses, especially
larger corporations, need to compete in a global arena in order to keep a competitive
advantage. Due to the constant demand for lower pricing with the combination of an
expectation of higher quality, the marketplace is continuously becoming more and more
competitive. Lastly, nations are driving global marketing as well through laws and
economics. Trade agreements, world money matters, and international trade are
becoming more adapt to global business and therefore the wonder of global marketing.
Communication Technology
The first and debatably most influential factor in increased global marketing and
worldwide business in general is the growth and development of technology, particularly
used for communication, over the past few decades. International communication has
traditionally been focused on government communication for political and world issues,
with strong nations leading the way. Just in the past 100 years, this has dramatically
changed. The global communication network has opened up, not only to governments of
every country across the world, but also to businesses and individuals. People can
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communicate with one another across the world at a speed unimaginable just a century
ago.
While fast communication across the world may be a newer occurrence,
communication between different countries has always been essential for the “imposition
of imperial authority, as well as for the international trade and commerce on which they
were based” (History and Development). The Roman Empire, for example, could not
have spread as wide as it did if it weren’t for communication across its vast lands,
particularly for military and trade.
Communication is much more than what is done by foot and mouth, even then.
Written letters transferred ideas through and across countries. Telegrams allowed these
messages to be conveyed further and much faster than ever before. Stemming from the
telegram, phones grew as the main channel of communication throughout the world. Over
the past several decades, the price to call internationally has fallen dramatically (Keegan
and Green 45). With the internet, individuals can communicate universally through
instant messaging, e-mail, fax, Facebook, Twitter, Instagram, Skype and countless other
social media apps and forms of communications. Global communication technology has
increased not just between individuals, but between masses. YouTube is now connecting
artists, consumers and video bloggers around the world. TV shows and movies are played
universally. Pop singers and rock stars go on world tours, reaching all of their fans in
dozens of countries. From posting a status on Facebook to creating an online store, the
internet instantly and automatically causes anything uploaded to it to become global.
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This information revolution, due to the technology and the unprecedented high
levels of communication, is causing different cultures to share, compare and converge.
Referred to as “democratization of information”, this phenomenon is causing people
worldwide to compare their standards of living and personal lifestyle to those all around
the globe (Keegan and Green 44). Clearly, the increase of communication technology has
dramatically increased the speed, efficiency, and effectiveness of communication across
cultures, therefore resulting in similarities and connections between cultures, and thus
products and business.
Travel and Transportation
A second and quite related factor driving global business and marketing is the
increase in travel and transportation, both nationally and internationally. Over the past
century, time and cost barriers of travel and transportation have dramatically decreased.
Railroads paved the way for the American industrial revolution by cutting cost and time
of travel and transportation. Ships carry cargo and individuals around the world. With the
invention of the plane, time spent on transportation radically shrunk and we saw a change
in mass transportation of both goods and people.
The traveling of people and the transportation of goods between countries both
affect global marketing in different ways. First, focusing on people, we see how the
increase in travel technology affects the cultures wants and needs. Much related to the
first driving factor of increased communication in the previous section, travel has allowed
people to experience different cultures and become more open to foreign ideas and
products. When people visit another country, they typically feel a tie to that culture or
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civilization. They identify with the things they saw and the people they met. It’s natural
to want to take a part of the experience home with you. Even once they are back in their
native country, they may be more susceptible to products resembling the culture they
experienced. Just in the past 45 years, international travel has increased from 75 million
individuals annually to 980 million in 2011, according to Air Transport Association
(Keegan and Green 45).
Secondly, it is easy to see how transportation of goods has affected global
business. With the ease of transportation of products between different countries,
business has naturally gone more global. While the product may be manufactured in
Bangladesh due to the lower labor wages, it may be designed and developed in California
and sold across Europe. This would not be possible without communication and
transportation of the product. As the goal of a business is to make money, it would not be
worth it to produce the product on one continent and sell it on another if the
transportation and distribution of the product was expensive or timely. Since the money
saved on labor exceeds the cost of transportation, it is financially sound to manufacture
internationally.
Outsourcing isn’t the only way transportation of goods affects global business.
Once these goods are made, they can be shipped out around the world, being sold in
international marketplaces. Clearly, if a company is selling a product in another country,
they are going to need to invest in marketing their product to the new country. Deciding
on a marketing implementation and advertising strategy is global marketing. Because it is
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now physically so much easier for a business to sell their product internationally, global
marketing is a central focus for companies that do so.
Converging Needs and Wants of Markets
Due to the increase in communication and travel as previously discussed, people
can now compare their own lifestyles with individuals from other countries, converging
the wants and needs of consumers worldwide. In fact, “evidence is mounting that
consumer needs and wants around the world are converging today as never before. This
creates an opportunity for global marketing” (Keegan and Green 45). This sensation is
expected to continue in this trend, only bringing needs and wants of different markets
closer together. As the previous two factors continue to increase a connected global
environment, global marketing will be following right along.
Product Costs and Quality
Finance or accounting 101 will tell you a company will typically make more
money when it sells more, assuming it is profitable and the revenue is greater than the
costs. If there is a positive operating margin, it will be financially beneficial to sell as
much as possible. Having a bigger market is one of the most steadfast ways to increase
sales. Therefore, selling to foreign countries will increase the number of sales and
consequently positively affect the company’s bottom line, assuming that the product will
be accepted into the market of the other country. For some particular industries, startup
costs can be astronomically high. Selling to multiple countries and international markets
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increases the amount of products sold and can cover the high R&D or setup/startup costs
often found in high-tech and medical industries.
A global company could also put that money toward improving the product
through further research and development. This in turn increases the quality of the
product, which is necessary to remain competitive in such an aggressive world. A
cyclical pattern is developed; more money allows for more R&D, creating a better
product, which brings more money etc… With the consumer demands for continually
improved quality, it is imperative for a global company to continue to improve, especially
when competing on a global scale.
Trade Agreements and World Economics
The last driving factor for global business and marketing are the nations
themselves. Global integration is driven by quite a few different trade agreements
including NAFTA for the United States, Canada and Mexico, the European Union for
Europe obviously, and the World Trade Organization (WTO) ratified by over 120
countries promoting free trade (Keegan and Green 44).
Companies are specifically interested in key developing countries like BRIC
(Brazil, Russia, India, and China) because they show a lot of potential for growth, the
economy is typically strong, resulting in more shopping by consumers, and they typically
have a low resistance to outside companies. For the most part, countries are more open to
having outside, or “foreign”, companies do business when their economy is strong
because they are not as worried about the potential competition these businesses may
cause. Likewise, when a country is struggling financially, they are not as open to foreign
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companies, as they are more focused on protecting local businesses and their nation’s
economy.
International trade is not a new phenomenon. Societies have been trading for
thousands of years, as evident from the Silk Road, the East India Company and even
excerpts from the Bible. B2B communication has existed worldwide with international
trade, outsourcing and collaborations, but now as marketplaces are easier to enter and
consumers are easier to reach, companies from around the world are taking advantage of
a broader, more penetrable market and are benefitting from higher B2C sales. Companies
are now able to market directly to the people of different countries through mass media
rather than just their own country or selling to a company in the other country. Today,
businesses need global marketing in order to reach their full commercial potential
(Keegan & Green 28). For many companies with international competitors, global
marketing is necessary for survival.
Restraining Factors
While these driving factors are really pushing along the use of global business and
marketing from both the consumer and company sides, there are some restraining factors
that affect both the buying and selling side of global endeavors as well. Barriers such as
language, national controls and organizational obstacles take away from the advantages
of global marketing, making it harder for business to do international business. These
barriers present opposition from many outside sources as well as internally from the
company. Although there are multiple restraining factors for consumers and global
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businesses, the driving factors have much more momentum and are therefore a stronger
force in shaping the future of global business and advertising.
Language
Language barriers are the most obvious resistant factor when it comes to
international marketing and business. As a factor of culture, a native language of a
country varies throughout the world. There are over 1,000 individual languages across the
globe (Anderson). However, as a result of globalization, English has diffused across the
world as the primary language for business and international communication. In fact,
more people speak English as a foreign language today than natively (Keegan and Green
134). More children around the world are learning English in schools than ever before.
85% of high school aged students are learning English in the EU, though most of their
native languages are not English (Keegan and Green 134).
While English has become the worldwide language of business, not all people in
the business world can speak English. This is where language begins to become more of a
barrier than a benefit of globalization. Communication problems with international trade,
outsourcing, and selling in foreign countries can negatively affect businesses that are
trying to succeed on a global scale. Large-scale complications can result from
miscommunication with manufacturers, managers, and sales associates who speak
another language.
Additionally, communication issues due to language barriers can be present not
only within the company, but with consumers of the global marketplace. International
advertisement and marketing struggles with language as a restraining factor because
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many consumers of foreign marketplaces come from different cultures and backgrounds.
They cannot all be communicated with in the same manner. A magazine article or
television commercial cannot simply be copied and reprinted or replayed in a new market
with a different language. The text and voiceover of the commercials will need to be
adjusted to their individual language.
Written and verbal language aspects are not the only communication problem for
global markets. Unspoken communication, including gestures, facial expressions, and
other forms of body language supplement verbal communication that are tied to
language. Many cultures, especially Asian and eastern cultures, put more of an emphasis
on nonverbal communication than people from western cultures do. Likewise, there may
be other aspects in an advertisement that are not cohesive with the communication of the
culture. Lastly, meaning can be lost in translation. For example, colgate means “go hang
yourself” in Spanish. Clearly, the successful and popular toothpaste company struggles
from some language restraining effects in Spanish speaking countries.
Globaphobia
There are some individuals around the world that are concerned with
globalization and the affects that it may have on their traditional culture and ways of life.
They believe the negative effects of global marketing are a threat and view it with an
attitude of hostility. Many are focused on the cultural deterioration caused by the
connectedness of countries and adapted cultural aspects. They fear a loss of their
countries traditional ways or a specifically negative affect to their country.
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Americans, for example, aren’t as worried about the loss of their culture as much
as the potential negative effects globalization may be causing to the economy and
financial situation of US citizens. This is partially because American culture is not as
vulnerable to be forgotten as globalization continues to grow. On the contrary, other
countries are concerned of becoming too “Americanized” due to the large amount of
global companies being based in the United States. Americans are, however, concerned
about the economic results of globalization for the US. Many believe it has depressed
wages of American workers, resulting “in the loss of both blue- and white-collar jobs”
(Keegan and Green 50). On the other hand, developing countries feel they are being taken
advantage of by advanced countries like the United States. Clearly labor issues are a big
concern for globalization and where it is leading international businesses and even
affecting companies who have chosen not to go global.
National Controls
While the elimination of many tariff barriers due to trade agreements like NAFTA
and the EU is a driving factor for globalization, there are many nontariff barriers that
contribute to restricting international trade of goods. These unofficial barriers to outsiders
cause problems for foreign companies and limit their ease of access to the citizens of that
particular country. Economic stimulus packages, such as the “buy American” provision
set out by the American government is an example of a national, unofficial barrier to
outside companies wishing to make a profit in America (Keegan and Green 50).
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Organizational Culture
Lastly, the organizational culture of a business itself may be a restraining factor
for going global. Some companies are not set up to work in a global marketplace. These
companies have the option to either change the structure of the company and potentially
the vision of the company overall, or they can simply not go global and suffer from lost
opportunities and increasingly greater competitive markets. Either one may be damaging
to the organizational culture and potentially detrimental to the company. Additionally, a
company may be too nearsighted or ethnocentric to realize and understand the importance
of expanding geographically into other countries. With know-it-all management
disregarding the importance of globalization, a company could suffer negative
consequences of globalization.
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CHAPTER 4
Standardization and Adaptation Strategies of Global Marketing
Global Marketing
As we can see through the historical progression of advertisement over the years
(Chapter 1), the culture variances of different countries and how that affects
advertisements (Chapter 2), and the driving factors of globalization (Chapter 3), it is
obvious that global business and therefore global marketing is essential to big companies
that wish to remain ahead and continue to hold a significant portion of their industry’s
market. In order to maintain a competitive advantage, these companies need to not only
partake in global marketing, but they must do so in a strategically intelligent way.
The organization’s culture, as discussed briefly in Chapter 3, greatly affects the
ability and strategy used by companies. There are four main management orientations
based on the individual business’s worldview and outlook toward international business.
From these, two main strategies of global advertising appear; standardization and
adaptation. The chapter concludes with a hypothesis of where these strategies will take
globalization in the future and how global marketing will continue to develop.
Ethnocentric Orientation
Ethnocentrism is defined as a feeling of superiority of a person’s home country as
compared to the rest of the world. A company may have an attitude of national arrogance,
making it indifferent to international marketing opportunities. Additionally, an
ethnocentrically orientated company may assume that because the products or services
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the company sells in their home country are successful, they will be successful
everywhere. However, as we have discussed, there are many factors that go into what
will sell in a country and what will not. Neglecting the culture of the new country is a
major problem that is associated with ethnocentric orientation.
Additionally, an ethnocentric orientated company may not have as much focus on
the marketing or operations of the international branch of the business (Keegan and
Green 41). By viewing the foreign markets as subordinate to the domestic ones, the
company is neglecting an important aspect of its business. This disregard negatively
affects the amount of business they get in this new market, therefore negatively affecting
their bottom line. Clearly, it is important to focus on foreign markets of new entrance if
the endeavor is to go well. Ethnocentrism and its affects can be detrimental to a company
trying to enter a new, foreign market or could prevent the company from trying the
international market at all. Today, “ethnocentrism is one of the major internal weaknesses
that must be overcome if a company is to transform itself into an effective global
competitor” (Keegan and Green 41).
Polycentric Orientation
As a sort of counterpart to ethnocentrism, polycentric orientation managements
believe each country is unique and should be treated as so. With a polycentric mindset, it
is imperative to create distinctive business strategies and individual advertisements for
each country in which the company does business. This orientation uses an adaptation
approach rather than a standardized one. An adaptation strategy focuses on the
localization of the business in each country.
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While a polycentric orientation may seem better than standardization due to the
individualization it emphasizes, there is a downside to this method. Because the
advertisement varies in each country, the consistency and global brand recognition may
suffer. Depending on the type of advertisement and marketing strategies the company
plans to implement, the brand may not be recognizable from one country to another.
However, this could be a good thing as well. Individuals that do not want to be
“Americanized”, for example, will not want to buy a product of a recognizably American
brand. If the product is adapted to their culture and it is advertised and marketed in a
different way, with a different logo for example, the individuals of the foreign country
may not realize they are buying an American brand.
Regiocentric Orientation
Regiocentric orientation is given away in its name. This orientation recognizes a
region as a relevant geographic unit, marketing to the region cohesively as one, yet
differently compared to marketing strategies of other regional geographic units. An
example of a region may be the countries of NAFTA (United States, Mexico, and
Canada). Many international companies focus on the countries of Europe together as one
region. This strategy allows an adaptation approach to market to different areas
individually, yet cuts down the work of creating new advertisement strategies for every
single country in which they choose to do business. Therefore, regiocentric orientation
combines adaptation and standardization to reap from the benefits of both while cutting
back on some of the main problems.
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Geocentric Orientation
The last management orientation a company may have is geocentric orientation.
This orientation sees the entire world as a potential market and attempts to develop
combined global strategies. A global company, marketing its product or service
transnationally, will have a geocentric orientation. Global companies are defined as “one
that pursues either a strategy of serving world markets from a single country, or one that
sources globally for the purposes of focusing on select country markets” (Keegan and
Green 43). Recently, big companies have changed from ethnocentric (Nissan),
polycentric (Unilever) or regiocentric (GM) to geocentric, recognizing the importance of
complete global business.
Having a geocentric orientation cuts down on costs of localized products and
marketing yet still does not treat the world as lesser than the domestic country of the
company. While global companies typically maintain association with headquarters in a
specific country, the national identity is blurred due to the used or global supply chains,
manufacturing in multiple countries or a country other than its headquarters, or the fact
that they serve the global market and have a good amount of sales outside of the home
country. Therefore, a company that is truly “transnational would be characterized as
‘stateless’” (Keegan and Green 43).
While ethnocentric marketing strategies are centralized on the domestic country
and polycentric marketing strategies are specifically decentralized, geocentric companies
integrate their marketing strategies on a global scale (Keegan and Green 42).
Additionally, regiocentric faces issues that geocentric resolves. “The multinational
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solution encounters problems by ignoring a number of organizational impediments to the
implementation of a global strategy and underestimating the impact of global
competition” (Yoshino and Rangan 64).
Standardization
The first main strategy for implementing global marking is standardization. This
strategy essentially takes the current ways of business as done in the home country and
implements them into the new country the business is expanding into. It is most
commonly seen in ethnocentrically managed companies. Standardization, for the most
part, neglects the cultures of the new country and fails to adapt to their specific needs,
wants and way of business.
The main benefit of the standardization strategy of global marketing is the
consistency and brand awareness it brings from around the world. If a company is
picking up and plopping down the exact same product and advertisements around the
world, individuals universally will be aware of the product and brand. However, it may
not be a positive outlook from some countries, resulting in negative effects for the
company.
Adaptation
As discussed through many of the business management orientations, specifically
polycentric orientation, adaptation is fundamentally the counterpart of standardization.
The strategy of adaptation as related to global marketing really takes individual cultures
into account. A company that implements this strategy understands the importance of
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differences one country may have compared to another and markets to each based on
their language, beliefs, wants, needs, and cultural factors.
The Future of Global Marketing
Through the history of advertisement and marketing, we have seen a continual
progression based on the technology available at the time as well as the change in the
ways of the world overtime. We know that culture and advertising are closely related, and
in order for advertising to be effective, it must take the specifics of the individual culture
into account. Additionally, as globalization has increased, cultures are growing closer
together. They are adapting different preferences from each other and greatly affecting
the cultures of one another. This is due to the increase of communication and
transportation technologies, cutting down the time and cost of international relations.
While there are problems of globalization, the driving factors are much stronger in
affecting the changing cultures. Due to this increase of globalization, international
marketing strategies are changing as well. Companies are turning away from ethnocentric
and polycentric management orientations and are headed toward geocentric marketing.
As for the future, I hypothesize the trend toward geocentric global marketing will
continue. As the world becomes more closely knit and cultures borrow from one another,
I believe both strategies of standardization and adaptation will become easier to
implement globally. As the geocentric management orientation uses both standardization
and adaptation strategies, it seems it is the most beneficial option for companies with
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regards to global marketing and will therefore continue to drastically increase over the
next decade.
45
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